From 1993 until the passage of PRWOA in 1996, the Clinton administration strongly supported state flexibility and innovation in welfare programs.

Type Elements of CalWORKs under PRWOA Time Limits Statewide (January 1998): Benefits are limited to a life-time maximum of five years.

Nationwide PRWOA meant that states were given some latitude on setting work requirements and providing work incentives.

Finally, researchers grapple with the problem of specifying the effects of waivers that the federal government granted to the states before the inception of the PRWOA.

The data showed that waivers granted before the passage of PRWOA played a modest role in changing national AFDC caseloads and that the decline in the caseload is attributable largely to economic growth.

CalWORKs(t) = California's welfare reform program under PRWOA which began in January 1998, at month t.

The other dummy variable began on January 1998 when PRWOA was implemented in California under CalWORKs.

Presently, many states, including California, allow working participants to keep a larger portion of their benefits as their earnings increase than was the case before the inception of the PRWOA.

In part, concerns about long-term welfare dependency provided the primary reason for the recent and dramatic provisions under the federal PRWOA.

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